Under the futures and options (F&O) segment, seven stocks were banned from trade on Friday, December 8, by the National Stock Exchange (NSE). The securities banned for the F&O trade are Balrampur Chini Mills, Delta Corp, India Cements, Indiabulls Housing Finance, National Aluminium Co, Steel Authority Of India Ltd (SAIL) and Zee Entertainment Enterprises Ltd (ZEEL).

Derivative contracts of these stocks were banned as the open market interest for these securities has crossed 95% of the market-wide position limit (MWPL) set by the exchanges. The MWPL is the maximum number of contracts that can be opened at any particular time. 

Delta Corp and India Cements were retained on the list as the open interest as a percentage of the MWPL of their F&O contracts stood at 92.4% and 83.4%, respectively, on December 7. Indiabulls Housing saw the open interest for its F&O contracts touch 92.7% of its MWPL. The open interest for ZEEL’s derivative contracts stood at 86.8% of its MWPL at Thursday’s closing time, while that of SAIL was 99.9%. 

All the above securities were retained on the list from Thursday, December 7. Balrampur Chini Mills and National Aluminium were added to the list on Friday as the open interest of their F&O contracts reached 161.1% and 101.2%, respectively.

The ban will be lifted once the position falls below 80%. Traders will get penalised for buying or selling these securities. They will be available for trading in the cash market.

The National Stock Exchange updates the list of securities on the F&O ban list daily. This list serves as a guide for traders and investors in the market. Traders who trade in indices do not encounter a situation of security ban.